Academic journal article International Journal of Entrepreneurship

Two Peas in a Pod? Exploring the Market Orientation, Innovation, and Dynamism of Mexico and Turkey's Entrepreneurial Culture

Academic journal article International Journal of Entrepreneurship

Two Peas in a Pod? Exploring the Market Orientation, Innovation, and Dynamism of Mexico and Turkey's Entrepreneurial Culture

Article excerpt

INTRODUCTION

Small businesses are encountering a demanding and more than ever changing external environment as a result of rapid technological evolution, globalization, and increasingly sophisticated competitors. For businesses where resources are scarce, such as the case of Mexican and Turkish businesses might suggest, striving for business practices that embrace market orientation becomes a key factor to survive or maintain their market share. Along with the dearth of resources, the environment for entrepreneurs becomes even more challenging due to unstable cultural, economic, and political factors. While abundant research is present on market orientation and its relation to performance in the Western context (Kohli and Jaworski, 1990; Narver and Slater, 1990), the focus has recently shifted towards studying this construct in a non-US and a non-Western context (Bhuian, 1998; Subramanian and Gopalakrishna, 2001; Horng and Chen, 1998; Hooley, Cox, Fahy, Shipley, Beracs, Fonfara and Snoj, 2000). Despite numerous studies that have explored the market orientation-performance relationship, scholars continue to study the relationship due to the mixed nature of the results found, especially in nonwestern contexts. Thus, the question remains as to whether the market orientation construct is similarly relevant in such different and unstable environments. In addition, empirical studies have mostly focused on large U.S. businesses, with the exception of a few studies (Pelham, 1997, 1999, 2000; Pelham and Wilson, 1995, 1996; Verbees and Meulenberg, 2004; Tzokas, Carter and Kyriazopoulos, 2001). Studying market orientation from an entrepreneurial view is critical as it can result in a significant difference as to whether a small business sustains its market share. Therefore, it is important to investigate and further enhance our understanding of the MO behavior and other related constructs in small businesses in developing economies (ServiereMunoz and Saran, 2012) as well as in non-Western economies.

The market orientation-performance relationship has received an extensive support in the literature. Thus, this study not only focuses on this construct but expands its focus to assess other influential factors, such as dynamism and innovation, to determine whether differences exist in the practice of these constructs with respect to ownership (owner vs. manager) and gender (male vs. female) in Mexico and Turkey. Innovation and dynamism are included in response to the call for studying market orientation in conjunction with other variables as it allows to study the relative importance of market orientation and understand whether and how is interrelated to other factors (Renko, Carsrud and Brannback, 2009). For example, studying market orientation with additional variables has furthered our understanding that dynamism has an impact on the market orientation-performance relationship (Byrom, Medway and Warnaby, 2001; Megicks, 2001) and that, when paired with innovation (Han, Kim and Srivastava, 1998; Jaworski, Kohli and Sahay, 2000; Slater and Narver, 1994, 1995) market orientation has positive influence on organizational performance. Environments whose nature reflect a dynamic perspective can motivate small businesses to identify and satisfy customer needs and observe competitors' actions by developing externally oriented actions which, after all, are factors that make up a marketing orientation (Serviere-Munoz and Saran, 2012).

The literature in the small business area indicates that differences between managers and owners of small businesses are likely to be discovered when studying these businesses (Daily and Dollinger, 1993; Gallo 1995; Gudmundson, Tower and Hartman, 2003; McConaugby, Matthew and Fialko, 2001). In almost all emerging markets, the dominant pyramid ownership structures still prevail and disparate power relations exist between owners and managers, which bring the potential ramifications in terms of managerial agency problems (Lins, 2003). …

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